(PatriotNewsDaily.com) – Former President Donald Trump has proposed that all imported goods should have a 10 percent blanket tariff. However, according to an analysis such a tariff could end up costing U.S. households around $1,500 per year.
Trump, who is the presumptive 2024 GOP presidential nominee has pledged that if he wins back the White House he will be imposing a 10 percent tariff on all imported goods. A tax on imports by sector could mean that Americans could spend around $90 more on food, $220 on cars, $70 on clothes, $120 on oil, $50 on furniture and appliances, and $80 on electronics each year. This analysis was completed by the Center for American Progress (CAP).
In the report, the group argued that American households in the middle-income bracket, who are in the 40th and 60th percentile of the income distribution, on average consume around 85 percent as much as the average household. This could mean that the average household in the United States could see a tax increase of roughly $1,500.
Trump’s campaign has argued that this tariff will be one of the key aspects of the economic strategy they will focus on, which will place a lot of attention on domestic manufacturing. Trump’s campaign argued that this is going to be an attempt to strengthen the country while also rebalancing the global trading system.
The study further pointed out that there are no Chinese companies that belong in the top 10 U.S. importers, and that often the importers are domestic companies that distribute goods to U.S. consumers.
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